Business Ethics and Stakeholder Management: Developing a Structured Approach for Small Business' Owner-Managers

Doctoral Thesis / Dissertation , 2011 , 441 Pages , Grade: Excellent

Business economics - Business Management, Corporate Governance

Business ethics is a matter of increasing importance and public awareness. Recent scandals and the financial crisis have suggested that the standard of business ethics is not high and that corporate behaviour should not solely be oriented to profit goals. Rather, a firm’s ethical conduct should be part of its focus. While discussions of ethical questions in a market economy are mainly related to large firms, this thesis specifically aims at revealing potential problem issues and solutions for small firms. These firms are often ignored when moral concerns in business are addressed. This is in contrast to their importance for the economy and society of almost every country of the OECD, as they constitute the majority of all companies, and provide a major share of jobs.

The majority of the studies examining business ethics are focused on large corporations, using quantitative strategies. Few studies related to small business have been undertaken. The question of how these firms and their owner-managers could systematically engage in business ethics and ethical stakeholder management remain unanswered. The thesis develops a tool which explicitly addresses this topic: the Ethics Integration Guideline. On the basis of a research paradigm of constructivism, a study was designed which was intended to elicit, and then to guide, small business owner-managers’ ethical attitudes, perceptions and experiences. It aimed to develop a structured guideline which can help small firm owners to integrate ethical considerations into their business activities. Taking owner-managers’ perspectives into account provides insight into the small firms’ context. Thus, practical applicability of the guideline is provided.

The results of the research suggested the framework for an Ethics Integration Guideline comprised of sets of questions and imperatives derived from the interview statements during the research. It turns out that the guideline differs considerably from approaches applied in large firms. The Ethics Integration Guideline developed in this research provides a unique tool which connects research results with user’s individual perspectives and experiences in his firm. The guideline is flexible, applicable and adaptable to the needs of the firm in question. It bridges the gap between ethics theory and business conduct. Thus, it contributes to professional practice in small firms – a sector which is commonly underestimated in its importance to the welfare of a society.

Inhaltsverzeichnis (Table of Contents)

• 1. Introduction
• 1.1 The Business Ethics Problem
• 1.2 Research Questions
• 1.3 Basic Definitions
• 1.4 Basic Ethical Presumptions
• 1.5 Justification of the Focus on Small Firm Owner-Managers
• 2. Contextual Setting
• 2.1 History and Perspectives of Philosophy
• 2.1.1 Teleology
• 2.1.2 Social Contract Theory
• 2.1.3 Deontology
• 2.1.4 Concluding Comments on History and Perspectives of Philosophy
• 2.1.5 Contribution of this Section to the Research Topic
• 2.2 Economic Framework of Business Ethics in Western Societies
• 2.2.1 Capitalism and State Welfare Capitalism
• 2.2.2 Justice and Equality
• 2.2.3 The Existence of Companies
• 2.2.4 Characteristics of Small Firms
• 2.2.5 Laws and Legal Constraints
• 2.2.6 Professions and Professional Practice
• 2.2.7 Concluding Comments on the Economic Framework of Western Societies
• 2.2.8 Contribution of this Section to the Research Topic
• 2.3 Moral Problems Inside and Outside of Corporations
• 2.3.1 General Dimensions of Moral Problems
• 2.3.2 Particular Ethical Issues in Business
• 2.3.3 Conclusions on Moral Problems Inside and Outside of Corporations
• 2.3.4 Contribution of this Section to the Research Topic
• 2.4 Concepts of Ethics in Business
• 2.4.1 Corporate Social Responsibility
• 2.4.2 Stakeholder Theory
• 2.4.2.1 Introduction
• 2.4.2.2 Justifications of Stakeholder Theory
• 2.4.2.3 Criticism of Stakeholder Theory
• 2.4.2.4 Different Understandings of Stakeholder Theory
• 2.4.3 Concluding Comments on Concepts of Ethics in Business
• 2.4.4 Contribution of this Section to the Research Topic
• 2.5 Summary of the Contextual Setting
• 3. Literature Review
• 3.1 Studies Related to Ethical Motivations and Underlying Philosophical Understandings
• 3.2 Studies Focused on Instruments to Enforce Moral Concern
• 3.3 Studies Related to Perceptions of Ethical Issues and Moral Behaviours in Businesses
• 3.4 Studies Related to Environmental Concern
• 3.5 Contribution of this Section to the Research Topic
• 3.6 Summary of the Literature Review
• 4. Methodology
• 4.1 General Methodological Aspects
• 4.1.1 General Characteristics of Different Research Approaches
• 4.1.2 General Characteristics of Different Research Methods
• 4.2 Description of the Research Design
• 4.2.1 Research Paradigms
• 4.2.2 Methodology
• 4.2.3 Sample Design
• 4.2.4 Data Collection
• 4.2.5 Justification of the Aspects Addressed in the Interview Guideline
• 4.2.6 Data Analysis
• 4.2.7 Research Quality
• 4.2.8 Considerations on Research Ethics
• 4.2.9 Limitations of this Research Approach
• 4.3 Summary of Methodology
• 5. Results
• 5.1 Interview Guideline Question 1
• 5.1.1 Findings on Question 1
• 5.1.2 Deviant Participants’ Statements on Question 1
• 5.2 Interview Guideline Question 2
• 5.2.1 Findings on Interview Question 2
• 5.2.2 Deviant Participants’ Statements on Question 2
• 5.3 Interview Guideline Questions 3 and 4
• 5.3.1 Findings on Interview Questions 3 and 4
• 5.3.2 Deviant Participants’ Statements on Questions 3 and 4
• 5.4 Interview Guideline Question 5
• 5.4.1 Findings on Interview Question 5
• 5.4.2 Deviant Participants’ Statements on Question 5
• 5.5 Interview Guideline Question 6
• 5.5.1 Findings on Interview Question 6
• 5.5.2 Deviant Participants’ Statements on Question 6
• 5.6 Interview Guideline Question 7
• 5.6.1 Findings on Interview Question 7
• 5.6.2 Deviant Participants’ Statements on Question 7
• 5.7 Interview Guideline Question 8
• 5.7.1 Findings on Interview Question 8
• 5.7.2 Deviant Participants’ Statements on Question 8
• 5.8 Interview Guideline Question 9
• 5.8.1 Findings on Interview Question 9
• 5.8.2 Deviant Participants’ Statements on Question 9
• 5.9 Summary of the Results
• 6. Answering the Research Questions
• 6.1 Answering Research Sub-Question 1
• 6.1.1 Findings on Research Sub-Question 1
• 6.1.2 Implications of the Findings on SQ-1 on the Ethics Integration Guideline
• 6.2 Answering Research Sub-Question 2
• 6.2.1 Findings on Research Sub-Question 2
• 6.2.2 Implications of the Findings on SQ-2 on the Ethics Integration Guideline
• 6.3 Answering Research Sub-Question 3
• 6.3.1 Findings on Research Sub-Question 3
• 6.3.2 Implications of the Findings on SQ-3 on the Ethics Integration Guideline
• 6.4 Answering Research Sub-Question 4
• 6.4.1 Findings on Research Sub-Question 4
• 6.4.2 Implications of the Findings on SQ-4 on the Ethics Integration Guideline
• 6.5 Answering Research Sub-Question 5
• 6.5.1 Findings on Research Sub-Question 5
• 6.5.2 Implications of the Findings on SQ-5 on the Ethics Integration Guideline
• 6.6 A Normative Response to Research Findings: Answering the Main Research Question
• 6.6.1 Ethics Integration Guideline Part 1: Diagnostic Questions
• 6.6.2 Ethics Integration Guideline Part 2: Behavioural Instructions
• 6.7 Comparison of the Guideline to Large Companies’ Ethics
• 6.8 Summary of Answers to the Research Questions
• 7. Conclusions and Hints for Future Research

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

The main objective of this thesis is to develop a practical guideline for small business owner-managers to integrate ethical considerations into their business activities. This guideline is based on a qualitative study exploring the ethical attitudes, perceptions, and experiences of small firm owner-managers.

• The role of owner-manager personality and values in shaping ethical conduct.
• The identification and prioritization of stakeholders in small firms.
• The nature and management of ethical dilemmas in small business contexts.
• The development of practical, adaptable strategies for ethical decision-making in small firms.
• The comparative analysis of ethical practices in small firms versus larger corporations.

Zusammenfassung der Kapitel (Chapter Summaries)

Chapter 1: Introduction introduces the problem of business ethics, particularly its lack of attention in small firms, and outlines the research questions. It provides basic definitions of ethics and business ethics and discusses underlying ethical presumptions.

Chapter 2: Contextual Setting establishes the philosophical, economic, and social context of business ethics. It explores different philosophical perspectives, the economic framework of Western societies, and common ethical dilemmas in business.

Chapter 3: Literature Review summarizes existing research on business ethics, highlighting the limited attention given to small firms and identifying gaps in existing research methodology.

Chapter 4: Methodology details the research design, justifying the use of a qualitative approach, in-depth interviews, and purposive sampling. It discusses considerations of research quality and ethics.

Chapter 5: Results presents the findings from the interviews, categorized by research question and stakeholder group, including analysis of responses from deviant cases.

Chapter 6: Answering the Research Questions analyzes the interview results to answer the research questions and presents the developed "Ethics Integration Guideline," a two-part tool (diagnostic questions and behavioral instructions) designed to help small business owners structure their ethical decision-making.

Schlüsselwörter (Keywords)

Business ethics, stakeholder management, small firms, owner-managers, qualitative research, ethical dilemmas, corporate social responsibility, stakeholder theory, ethics integration guideline, Germany.

• Grade: Excellent
• Author: Juergen-Matthias Seeler (Author)
• Publication Year: 2011
• Pages: 441
• Catalog Number: V187428
• ISBN (eBook): 9783656111351
• ISBN (Book): 9783656111498
• Language: English
• Tags: Corporate Social Responsibility, Small Business, Owner-Manager, Stakeholder Management, Corporate Governance